Home sales in Iowa drop 27% in January

There were 1,189 homes sold in Iowa last month according to reports filed with the Iowa Association of Realtors . IAR President Terry Knapp says the total sales dropped 27% compared to January of 2008. He blames bad weather for the decline and also believes many buyers were waiting to see the outcome of the federal economic stimulus legislation, which President Obama signed into law Tuesday.

The average price of homes sold in Iowa last month decline 4% from one year ago. "The average sale price in January, across the state, was $131,749," Knapp said. "In (January) 2008, the average price was $137,930."

Despite the continued dips in prices and number of sales, Knapp says there are some positive signs for home realtors. The association’s report shows 55% of the homes sold last month were on the market for 90 days or less and 95% were on the market 180 days or less. Knapp says agents across the state are reporting that listing and sales activity has picked up in the last two weeks, so he’s hoping February figures will reflect some recovery.